Business ethics and

corporate governance
Topic: Environmental pollution & society

SUBMITTED TO:- SUBMITTED BY:-

Ms. AMAN SHWETA DUTT
M.COM II
5811
Environmental pollution & Society
• Environmental ethics is a branch of ethics that studies the
relation of human beings and the environment and how
ethics play a role in this.
• Environmental ethics believe that humans are a part of
society as well as other living creatures, which includes
plants and animals.
• These items are a very important part of the world and are
considered to be a functional part of human life.
• Thus, it is essential that every human being respect and
honor this and use morals and ethics when dealing with
these creatures.
• Environmental ethics are a key feature of environmental
studies, that establishes relationship between humans and
the earth.
The top five reasons to have a socially
responsible business are:
Employees want demand their company to be
socially responsible

Consumers expect better business practices

It creates competitive immunity

Capitalism is evolving, and society is, too

It is a moral imperative
Obstacles to Corporate Social
Responsibility

Lack of awareness and conviction among management

Lack of human resources

Competing codes of conduct and multiple requirements

Lack of time and financial resources to pursue CSR practices

Lack of organizational commitment to CSR

 The major arguments for the
assumption of social responsibilities
by business
Discouragement of further
Public expectations
government regulation

Balance of responsibility
Long run profits
and power

Ethical obligation Stockholder interests

Public image Possession of resources

Superiority of prevention
Better environment
over cures
 The major arguments against the
assumption of social responsibilities
Violation of profit maximization

Dilution of purpose

Costs

Too much power

Lack of skills

Lack of accountability

Lack of broad public support

 Environmental Pollution
• Environmental pollution has existed for centuries but only started
to be significant following the industrial revolution in the
19th century.
• Pollution occurs when the natural environment cannot destroy an
element without creating harm or damage to itself.
• The elements involved are not produced by nature, and the
destroying process can vary from a few days to thousands of years
(that is, for instance, the case for radioactive pollutants).
• In other words, pollution takes place when nature does not know
how to decompose an element that has been brought to it in an
unnatural way.
• Pollution must be taken seriously, as it has a negative effect on
natural elements that are an absolute need for life to exist on earth,
such as water and air.
• We can identify several types of pollution on Earth: air
pollution, water pollution and soil pollution.
 TYPES OF POLLUTION

• Air pollution
• Water pollution
• Noise pollution
 Air pollution
Causes of air pollution Effects of Air pollution
1. Burning of Fossil Fuels 1. Respiratory and heart
2. Agricultural activities problems
3. Exhaust from 2. Global warming
factories and industries 3. Acid Rain
4. Mining operations 4. Eutrophication
5. Emission of smoke 5. Effect on Wildlife
from oil refineries 6. Depletion of Ozone
6. Emission of gases and layer
dust arising from atomic 7. Causes of smog in
plant winter
7. Industrial accidents 8. Adversely affects the
and disasters Emission marine life
Causes of water pollution Water pollution
1. Industrial waste
2. Sewage and waste water
3. Mining activities
4. Marine dumping Impact of water pollution
5. Accidental Oil leakage
6. Burning of fossil fuels 1. It can create diseases like
7. Chemical fertilizers and pesticides typhoid, jaundice, cholera,
8. Leakage from sewer lines gastroentytis, etc.
10. Radioactive waste 2. It can endanger lives of
9. Global warming: aquatic species.
11. Urban development 3. It may result in scarcity of
12. Leakage from the landfills drinking water.
13. Animal waste
14. Underground storage leakage
 Noise pollution

Causes of air pollution

1. Industrialization Effects of Noise Pollution

2. Poor Urban Planning
3. Social Events 1. Hearing Problems
4. Transportation 2. Health Issues
5. Construction Activities 3. Sleeping Disorders
6. Household Chores 4. Cardiovascular Issues
5. Trouble Communicating
6. Effect on Wildlife
Causes of land pollution
(i) Excessive use of fertilizers,
Land Pollution
chemicals and pesticides in
cultivation.
(ii) Disposal of solid waste of
industries, mines and quarries.
(iii) Disposal of solid waste from Effects of Land Pollution
construction of roads, buildings a. Reduces the quantum
etc. of cultivable land area.
(v) Effluents of some plants like
b. Causes health hazards
paper, sugar etc. which are not
absorbed by soil. as it contaminates the
(vi) Excessive use of plastic bags, sources of food.
which are non-biodegradable. c. Causes damage to the
(vii) Dumping of non-composable landscape.
wastes from households, hotels
d. Leads to water and air
and hospitals as well as from
industries. pollution.
 Role of Business in Environmental
Pollution
• Emission of gas and smoke from manufacturing plants;
• Use of machines, vehicles etc. contributing to noise
pollution;
• Deforestation due to acquisition of forest lands for
setting up plants;
• Growth of urbanization and industrialization;
• Disposal of wastes and effluents into rivers and canals;
• Disposal of solid wastes in the open space;
• Mining and quarrying activities; and
• Increasing use of transport.
 Government has taken a major step in protecting the
environment by passing the
Environment Protection Act, 1986 in addition to having
Water (Prevention and Control of Pollution) Act, 1974,
Air (Prevention and Control of Pollution) Act, 1981 and several
other Acts.

Business can have three types of role

Preventive Awareness
Curative Role Role
Role
 Other relevant issues
1. Conservation of Natural Resources
2. Environmental Standards
3. Sustainable Development
 GREEN BUSINESS STRATEGIES
• Eco-friendly or clean and low waste technology should be used by the industrial
organizations.
• Industrial waste should be recycled as far as possible.
• There should be scientific treatment of all emissions before their release into the
environment.
• Plant and machinery should be modernized to minimize the pollution.
• The business houses should comply with the laws and regulations enacted for
prevention of pollution. This should be done in letter and spirit.
• The business houses should cooperate with the public authorities in their
programmed of environmental protection.
• Positive steps should be taken to save the environment. These include plantation
of trees, cleaning of rivers, ponds, etc and protection of wild life.
• All businesses have to consider moral questions. It is an important and strategic
variable. If a business focuses solely on the bottom-line without considering the
implications of its relationship with the community as a whole, its short -termist
position could undermine the bottom-line.
• Low carbon technology: Business should follow low carbon economy.
 ENVIRONMENTAL ETHICS OF
HINDUSTAN PETROLEUM
Mission To have safe, healthy and pollution free environment in and around all our
refineries, plants, facilities and other premises at all times; instill awareness in these
areas, including relevant laws, in all employees, their families and the communities in
which we carry out our activities.
Environment Policy The Corporation is committed to conduct its operation in such a
manner as compatible with environment and economic development of the community.
Its aim is to create an awareness and respect for the environment, stressing on every
employee’s involvement in environmental improvement by ensuring healthy operating
practices, philosophy and training.

Safety Policy
Health Policy
As an integral part of its business, HPCL believes
To provide a structured program to
that no work or service or activity is so
look after and promote the health of
important or urgent that safety be overlooked or
vital “Human Resource”, essential for
compromised. The Corporation will constantly
productivity and effectiveness of the
Endeavour to achieve and maintain high
Corporation
standards of Safety in its operations.
 Recent Initiatives
• HPCL maintains high standards of safety, health and environmental care at all its operating
locations, always ensuring that increasing scales of operation have no negative impact on
the standards of safety, health and environment and without losing sight of its long term
goal of zero occupational injuries, operational incidents and environmental releases.
• HPCL is committed to conducting business with a strong focus on preserving the
environment, sustainable development, safe work place and enrichment of the quality of
life of employees, customers and the community. Established systems and procedures are
constantly revised for continual improvement to achieve the higher standards of safety,
occupational health and environment protection.
• HPCL has well equipped health care facilities / arrangements at all major locations.
Occupational Health is focus area for HPCL and all issues pertaining to occupational health
are addressed comprehensively.
• HPCL has made significant improvements in its safety performance over the years. The
safety management systems of both the refineries are being audited continually by M/s.
DNV, in line with their international safety rating system (ISRS). Mumbai Refinery & Visakh
Refinery has already been upgraded from level 6 to level 8.
• Emissions of pollutants in the refineries like SO2 have been drastically reduced from 60 TPD
in 1984 to less than 25 TPD now, in spite of capacity increase from 4.5 MMTPA to 13
MMTPA and addition of various secondary processing and lube producing facilities.
• HPCL had pioneered Eco-friendly technologies such as changeover from Phenol to NMP
solvent in three lube extraction units and changeover from Oleum to NMP in the Hexane
Treating Plant, which were widely appreciated.
 CONT..
• Diesel Desulphurisation facilities are fully operational in both the Refineries to reduce
the sulphur in diesel from 1.0% to less than 0.05 %, to conform to BIS 2000/Euro II
norms.
• HPCL has undertaken projects worth about Rs. 2750 Crore for its “green fuels” project
in its Refineries for de-bottlenecking and process up gradation for the production of
Euro III diesel and petrol, to be in line with the national policy to implement Euro III
and Euro IV norms for fuel quality. These Projects are in an advanced stage of
completion.
• Both refineries have taken initiatives for treating the crude tank sludge, in
environmental friendly manner using in situ BALCO Technology of M/s Balmer and
Lawrie & Co. Ltd
• In line with the hazardous Waste Management rules, different hazardous waste like
spent catalysts, oily silt, non oily insulations etc. are being disposed off to Treatment,
Storage & Disposal Facilities approved by Pollution Control Board In order to comply
with the future proposed liquid effluent norms, replacement of existing ETP-I & ETP-II
with new integrated ETP by adopting Cyclic activated Sludge treatment followed by
Membrane Bio-Reactor and TTP has been approved and work placement is in progress
at Mumbai Refinery.
 CONT..

• Ambient Air quality is being monitored round the clock and

maintained as per National Ambient Air Quality Standard.
• The Environment Management System of both the
Refineries, have been re- audited and awarded
accreditation under ISO-14001 revised standards.
• All the 44 LPG Plants are certified with ISO 9001:2000, 38
plants with ISO 14001 and 21 plants are OHSAS: 18001
certified.
• 68 POL locations (as of 2008) are certified with ISO 9001, 32
locations with ISO 14001 and 12 locations with ISRS and 3
locations with OHSAS 18001.
• Extensive green coverage has been provided in and around
the refineries, marketing installations and housing colonies.
Mumbai Refinery
"GREENTECH AWARD“
PEACOCK AWARD” for the year 2007

Visakh Refinery
SILVER GREENTECH AWARD" for the year 2007
First Prize for Energy Conservation in Petroleum
Refining Sector for the year 2007
SUMMARY
• Social responsibility of business refers to all duties and obligations of
business directed towards the welfare of society.
• Understanding social responsibilities properly is essential for businessmen
as: -
 it creates a goodwill for the business among the public.
 it fosters long-term survival and growth of business.
 it provides satisfaction to the employees which is directly related to
productivity
 consumer have become conscious about their rights.
• Every business is a part of society and the business is responsible towards
every elements of the society, which may be called as various interest
groups. These interest groups consist of owners, investors, employees,
suppliers, costumers, competitors, government and society. ! Social values
may indicate good and desirable business conduct in the best interest of
society.
• Business ethics suggest ways and means to conduct the business affairs
according to morally justified principles.